Building competitive advantages of regional banks and FinTech companies through strategic alliances

Subject. The article discusses the issue of creating strategic alliances of regional banks and FinTech startups to build competitive advantages. Objectives. The aim is to expand existing knowledge about the essence of the phenomenon of strategic alliance in the FinTech industry, identify the motives that encourage regional banks and FinTech startups to cooperate, as well as define possible development prospects. Methods. The study employs abstract-logical and dialectical methods, methods of expert assessments and generalization. Results. Currently, regional banks that do not have sufficient capital may try to overcome difficulties by taking advantage of a virtual digital business model of an alliance with FinTech companies based on fundamental principles, the most important of which are not only the trust of partners, but also the rights and responsibilities of partners. Conclusions. The convergence of characteristics of banks and FinTech companies should enable them to effectively utilize the optimal virtual digital model, depending on the goals and characteristics of the market niche occupied by the alliance.